Abstract: As the one of most important exchange rate determination theories, the Purchasing Power Parity(PPP) Theory is widely applied in empirical research, but rarely mentioned in Asia’s emerging markets. This paper states the empirical findings from a study of seven Asia’s emerging markets in the condition of the long term PPP. The absolute version of PPP proposition is tested by the unit root and cointegration tests using quarterly observations of exchange rates and domestic and foreign price levels (CPI) from 1957 to 2011 (against the U.S.). The tests indicate that the PPP hypothesis would not hold in all of the emerging economies in the long term. The factors may cause the poor performance are presented in the final section and the new approaches could be applied in the future researches.

Key words: Purchasing Power Parity, Asia’s Emerging Markets, Unit Root Test, Cointegration Test